Jeremy Goldstein Warns Of Hidden Costs In Employee Compensation

When it comes to employee benefits and compensation, Jeremy knows his stuff. Not only has he established his own law firm in New York City called Jeremy L. Goldstein and Associates LLC, he has also served as a partner in a similar law firm. His now 15-year career speaks for itself. R

He has advised some of the world’s largest and most profitable companies on employee benefits and compensation packages. Goldstein has also provided counsel during some of the largest business transactions on earth such as the acquisition of Goodrich by United Technologies.

According to Crunchbase, Jeremy Goldstein has recently given out some free advice for companies looking to maximize their value. He says the company should look towards stock options as a form of compensation to employees. There are many benefits to this type of compensation for a company.

On paper, employee salaries look very manageable when they take stock options in lieu of extra income. This makes a company look very attractive to shareholders and investors. The employees tend to work very hard in order to maximize the value of their stock options, as well.

Stock options are usually the right choice because of the extra tax burden put on equity by the IRS. But, Jeremy Goldstein warns, companies should investigate how much stock options will cost in accounting.

BizJournals revealed that Jeremy Goldstein’s biggest piece of advice concerns a specific type of stock option that can be given to employees as a form of compensation.

This type of compensation is known as a knockout option. The knockout option removes the employee from her stock option compensation if the value of the company drops too low.

This removes the possibility that the employee will try to cash out stock options when the value of the company is low. It also serves as extra employee motivation.

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